CHAPTER 1. STATUTORY HOME IMPROVEMENT WARRANTIES
IC 32-27
ARTICLE 27. CONSTRUCTION WARRANTIES ONREAL PROPERTY
IC 32-27-1
Chapter 1. Statutory Home Improvement Warranties
IC 32-27-1-1
Application of chapter
Sec. 1. (a) This chapter applies only to a home improvement thatis made under a home improvement contract.
(b) This chapter applies only to a home improvement contractentered into after June 30, 1992.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-2
Warranty effective date
Sec. 2. The warranties defined by this chapter become effectiveon the warranty date.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-3
"Home" defined
Sec. 3. (a) As used in this chapter, "home" means an attached ordetached single family dwelling.
(b) The term includes an attached garage.
(c) The term does not include:
(1) a driveway;
(2) a walkway;
(3) a patio;
(4) a boundary wall;
(5) a retaining wall not necessary for the structural stability ofthe home;
(6) landscaping;
(7) a fence;
(8) an offsite improvement;
(9) an appurtenant recreational facility; or
(10) other similar item.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-4
"Home improvement" defined
Sec. 4. As used in this chapter, "home improvement" means anyalteration, repair, or other modification of an existing home.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-5
"Home improvement contract" defined
Sec. 5. As used in this chapter, "home improvement contract"means a written agreement between a remodeler and an owner to
make a home improvement.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-6
"Load bearing parts of the home" defined
Sec. 6. As used in this chapter, "load bearing parts of the home"means the following:
(1) Foundation systems and footings.
(2) Beams.
(3) Girders.
(4) Lintels.
(5) Columns.
(6) Walls and partitions.
(7) Floor systems.
(8) Roof framing systems.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-7
"Major structural defect" defined
Sec. 7. As used in this chapter, "major structural defect" meansactual physical damage to the load bearing functions of the loadbearing parts of the home that:
(1) were installed, altered, or repaired by the remodeler in thecourse of remodeling the home; or
(2) although not installed, altered, or repaired by the remodeler,were directly damaged by the work of the remodeler;
to the extent that the home becomes unsafe, unsanitary, or otherwiseunlivable.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-8
"Owner" defined
Sec. 8. As used in this chapter, "owner" means a person who:
(1) owns the home; and
(2) contracts with the remodeler to perform the homeimprovement work in the home improvement contract.
The term includes any of the owner's successors in title before theexpiration of the warranties defined by this chapter.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-9
"Person" defined
Sec. 9. As used in this chapter, "person" means an individual, acorporation, a limited liability company, a business trust, an estate,a trust, a partnership, an association, a cooperative, or other legalentity.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-10
"Remodeler" defined Sec. 10. As used in this chapter, "remodeler" means a person whocontracts with an owner to alter, repair, or modify the owner's home.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-11
"Warranty date" defined
Sec. 11. As used in this chapter, "warranty date" means the dateby which all home improvements and work under the homeimprovement contract have been substantially completed so theowner can occupy and use the improvement in the mannercontemplated by the home improvement contract.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-12
Warranty coverage; warranties survive legal or equitable title
Sec. 12. (a) In performing home improvements and in contractingto perform home improvements, a remodeler may warrant to theowner the following:
(1) During the two (2) year period beginning on the warrantydate, the home improvement must be free from defects inworkmanship or materials.
(2) During the two (2) year period beginning on the warrantydate, the home improvement must be free from defects causedby faulty installation of:
(A) new plumbing systems;
(B) new electrical systems;
(C) new heating, cooling, and ventilating systems; or
(D) extended parts of existing systems.
The warranty does not cover appliances, fixtures, or items ofequipment that are installed under the home improvementcontract.
(3) During the four (4) year period beginning on the warrantydate, the home improvement must be free from defects causedby faulty workmanship or defective materials in the roof or roofsystems of the home improvement.
(4) During the ten (10) year period beginning on the warrantydate, the home improvement and affected load bearing parts ofthe home must be free from major structural defects.
(b) The warranties provided in this section survive the passing oflegal or equitable title in the home to subsequent persons.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-13
Warranty disclaimers; conditions; acknowledgment; default
Sec. 13. (a) A remodeler may disclaim all implied warranties onlyif all of the following conditions are met:
(1) The warranties defined in this chapter are expresslyprovided for in the home improvement contract between aremodeler and an owner.
(2) The performance of the warranty obligations is guaranteed
by an insurance policy in an amount equal to the contract pricemade under the home improvement contract.
(3) The remodeler carries completed operations productsliability insurance covering the remodeler's liability forreasonably foreseeable consequential damages arising from adefect covered by the warranties provided by the remodeler.
(b) The disclaimer must be printed in a minimum size of 10 pointboldface type setting forth that the warranties defined by this chapterreplace the implied warranties that have been disclaimed by theremodeler. The owner must affirmatively acknowledge by completesignature that the owner has read, understands, and voluntarily agreesto the disclaimer.
(c) The owner must acknowledge the disclaimer of impliedwarranties by signing, at the time of execution of the homeimprovement contract, a separate one (1) page notice attached to thehome improvement contract that includes the following language:
"NOTICE OF WAIVER OF IMPLIED WARRANTIES
I recognize that by accepting the express warranties and theinsurance covering those warranties for the periods provided inthis home improvement contract, I am giving up the right to anyclaims for implied warranties, which may be greater than theexpress warranties. Implied warranties are unwritten warrantiesrelating to the reasonable expectations of a homeowner withregard to the remodeling and home improvement of thehomeowner's home, as those reasonable expectations aredefined by the courts on a case by case basis.".
(d) If there is a default of the:
(1) insurance for the performance of the warranty obligations;or
(2) completed operations products liability insurance;
the disclaimer by the remodeler is void.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-14
Breach of warranty; award of damages
Sec. 14. (a) If a remodeler breaches a warranty set forth in section12 of this chapter, the owner may bring an action against theremodeler for:
(1) damages arising from the breach; or
(2) specific performance.
(b) If damages are awarded for a breach of a warranty set forth insection 12 of this chapter, the award may not be for more than:
(1) the actual damages that are:
(A) necessary to effect repair of the defect that is the causeof the breach; or
(B) the difference between the value of the home without thedefect and the home with the defect;
(2) the reasonably foreseeable consequential damages arisingfrom the defect covered by the warranty; and
(3) attorney's fees, if those fees are provided for in the written
contract between the parties.
As added by P.L.2-2002, SEC.12.
IC 32-27-1-15
Warranties in addition to contract rights; remedies
Sec. 15. (a) The warranties defined in this chapter are in additionto any other rights created by contract between the parties.
(b) The remedies provided in section 14 of this chapter do notlimit any remedies available in an action that is not predicated on thebreach of an express or implied warranty defined by this chapter.
As added by P.L.2-2002, SEC.12.